USDA has cut its estimate for Australia’s wheat output in 2017-18 (Oct-Sep) to 22.0 mln tn from 23.5 mln tn forecast earlier due to poor conditions across all growing regions. The forecast is 37.1% lower than the country’s output of 35.0 mln tn in 2016-17. Against expectations, the month of June was the second driest ever, which hampered crop development in north-western New South Wales, the Eyre and Yorke peninsulas in South Australia, and the northern and central regions of western Australia. Wheat acreage in the country is also seen 3% lower than the official estimate at 12.2 mln ha as farmers are switching to more profitable crops such as chickpeas, canola and lentil. The expected fall in production may also hit the country’s exports, which are pegged at 18 mln tn, down from 24 mln tn a year ago.